Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

What would you like to follow?

Emergent BioSolutions Inc.’s (EBS - Free Report) first-quarter 2019 loss of 13 cents per share significantly came in against the Zacks Consensus Estimate of earnings of 13 cents. Moreover, the loss was wider than the year-ago loss of 3 cents.

Revenues in the reported quarter soared 61.8% from the prior-year period’s $190.6 million, primarily backed by high product sales owing to the company’s recent acquisitions. The top line, however, missed the Zacks Consensus Estimate of $205 million.

Shares of Emergent have decreased 9.9% so far this year versus the industry’s increase of 2.9%.

Quarter in Detail

Total product sales rose a massive 102% to $153 million from the year-earlier quarter’s tally. This revenue uptick was mainly on the back of contribution from Narcan nasal spray, which was acquired from Adapt Pharma last October and small pox vaccine, ACAM2000, acquired from Sanofi (SNY - Free Report) in the fourth quarter of 2017.

BioThrax’s sales plunged 42% year over year in the reported quarter to $11.7 million. Other product sales declined 10.6% to $30.2 million from $33.8 million in the comparable quarter last year. Newly acquired product Narcan (naloxone HCl) nasal spray added $65 million to product sales.

Other product sales include contribution from anthrax monoclonal antibody, raxibacumab which was also acquired in the fourth quarter of 2017 from GlaxoSmithkline (GSK - Free Report) .

Contracts, grants and collaboration revenues surged 36% year over year to $21.7 million, primarily owing to greater R&D activities associated with certain development funding programs, most notably, the anthrax vaccine AV7909.

Contract manufacturing revenues decreased 39% to $15.9 million compared with the year-ago tally. This downside was primarily due to the contracted service work that took place in first-quarter 2018 but did not recur in the reported quarter.

The company recorded adjusted EBITDA of $7.4 million in the reported quarter as compared to $3.3 million in 2018, reflecting a jump of 124.2%.

2019 Outlook

Emergent retained its previously issued guidance for earnings and sales. It expects revenues in the range of $1.06-$1.14 billion in 2019. The company anticipates adjusted net income in the band of $150-$180 million and adjusted EBITDA in the bracket of $280-$310 million.

In the second quarter of 2019, the company anticipates total revenues within $200-$220 million.

Other Updates

In January, Emergent’s board of directors appointed Robert G. Kramer, Sr. as the company’s new president and CEO. He will succeed Daniel J. Abdun-Nabi, the current CEO, who decided to retire and also quit as a board member, effective Apr 1, 2019.

Last month, Emergent announced positive interim results from the mid-stage study on its chikungunya vaccine candidate, CHIKV-VLP. The company is evaluating the safety and immunogenicity of CHIKV-VLP in a phase II program across a series of dosing regimens.

The chikungunya virus has a major unmet medical need with no vaccines presently available. With the positive interim outcomes, Emergent plans to finalize the development plan and initiate a pivotal assessment on the candidate next year. Notably, last May, CHIKV-VLP was granted a Fast Track designation by the FDA.

Moreover, this March, Emergent initiated a phase III study to evaluate AV7909 for the post-exposure prophylaxis of anthrax disease. The candidate is designed to bring about a faster immune response in patients as compared to the currently available anthrax vaccine.

PDL BioPharma’s earnings estimates have been revised 100% upward for 2019 and 30% for 2020 over the past 60 days. The stock has gained 15.5% year to date.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

Resources

Client Support

Follow Us

Zacks Mobile App

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Verizon Media; Microsoft Corporation; Nasdaq, Inc.; Dow Jones & Company; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.08% per year. These returns cover a period from January 1, 1988 through March 4, 2019. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.

We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service.